July 20 2007, 10:39

Market players are not able to forecast onion prices in 2007

CIS produce business periodical, ""Agrooglyad: Vegetables and Fruits" weekly" informs about the controversial situation on Ukrainian market of bulb onion. The prices for early bulb onion are on average 60-70% higher than a year ago. However, the market players provide various forecasts for the prices for late onion; late varieties make the most part of gross onion harvest.

Market players mention most often the following range of the wholesale sales prices - they expect the prices to vary $0.16-0.2/kg on terms of the pick-up out of the farm. However, the specialists have been hearing the forecasts $0.3-0.4/kg and more than $0.4/kg since recently. These forecasts are based on the fact that onion has severely suffered from drought; even drip-irrigated onion fields won't provide the earlier expected yield. The survey regarding the forecasted prices for onion was conducted on www.lol.org.ua portal; according to its results, 50% of market players expect the prices to fluctuate $0.12-0.24/kg. Actually, one quarter of the surveyed players think that the prices will reach $0.3-0.4/kg and even higher.

The analysts of "Agrooglyad: Vegetables and Fruits" journal are studying now the real effect caused by drought to onion plantings. However, now we can state that onion cultivation areas have increased in 2007 in line with our earlier forecasts. Also, now we see that no onion export to Poland and the EU countries will obviously take place this year. The prices for onion are 25% lower now in Poland than in Ukraine, Polish onion has already started to enter our markets. Please check the updated forecast and track the market situation on the pages of "Agrooglyad: Vegetables and Fruits" weekly.